Posted by Linda Hakr  |  JUMP Realty  |  Windsor-Essex Region  |  March 2026

Big news for anyone thinking about buying a new home in Ontario — and it could save you up to $130,000.

On March 25, 2026, Premier Doug Ford announced that the Ontario government is temporarily removing the full 13% HST on new home purchases for a one-year window. This is one of the most significant housing affordability measures this province has ever introduced, and if you are planning to buy new construction, you need to understand exactly how it works.

As your local REALTOR® in the Windsor-Essex region, I want to break this down clearly so you know if you qualify and how much you could save.

What Exactly Was Announced?

The Ontario government, in partnership with the federal government, is proposing to remove the full 13% HST on eligible new home purchases. The program runs for exactly one year:

April 1, 2026 – March 31, 2027

This is a major expansion from the previous program, which only offered HST relief to first-time home buyers. Under this new proposal, ALL eligible buyers can qualify — whether you are a first-time buyer, a move-up buyer, or even an investor purchasing a residential rental property.

How Much Can You Save? The Full Breakdown by Price

Your savings depend on the purchase price of the new home. Here is exactly how the rebate works at each price point:

To put this into perspective: a buyer purchasing a newly built home for $900,000 would save $117,000 in tax. A buyer at $1,200,000 would save the full $130,000. This is not a small discount — this is transformational savings.

Who Qualifies?

This expanded rebate is open to a much wider group than ever before. You may be eligible if you are:

• A first-time home buyer
• A repeat / move-up buyer
• An investor purchasing a property as a long-term residential rental

The home must be used as either your primary place of residence OR as a residential rental property — short-term rentals like Airbnb do not qualify.

Key Eligibility Conditions — Read This Carefully

To qualify for this rebate, your purchase must meet specific conditions around timing and construction. There are two qualifying paths depending on when construction begins.

Path 1: New Construction Starting After April 1, 2026

If your home has not yet broken ground, here are the rules:

• Your purchase agreement with the builder must be signed between April 1, 2026 and March 31, 2027
• Construction of the home must begin on or before December 31, 2028
• The home must be substantially completed on or before December 31, 2031

Path 2: Construction Already Underway (Started Before March 31, 2026)

If the builder has already started construction, your purchase can still qualify:

• Construction must have begun on or before March 31, 2026
• Your purchase agreement must be signed between April 1, 2026 and March 31, 2027
• The home must be substantially completed on or before December 31, 2029

This second path is especially important for buyers looking at projects already under construction in Windsor-Essex. Many developments in our region are actively building — those homes can still qualify if you sign within the window.

What Types of Homes Are Eligible?

An eligible new home generally includes:

• Detached houses
• Semi-detached houses
• Condominium units
• Townhouses
• Rowhouses
• Owner-built homes (where you hire a builder to construct on land you own or lease)
• New residential rental properties (purpose-built rentals)

Important: Resale homes are NOT subject to HST, so this rebate does not apply to existing resale homes. This is exclusively for newly built or substantially renovated properties.

What About First-Time Buyers? There Is More Good News

If you are a first-time buyer, you have access to an additional layer of savings through a separate, earlier program announced in the fall of 2025.

First-time buyers who signed a purchase agreement on or after March 20, 2025 through December 31, 2030 are eligible for both provincial and federal HST rebates under the First-Time Home Buyers’ program. If your agreement falls within the April 1, 2026 – March 31, 2027 window, you will qualify for the expanded all-buyer rebate as well — giving you every available benefit stacked together.

Is This Guaranteed? The Federal Piece

The full 13% relief requires cooperation from both levels of government. Ontario has confirmed its commitment to covering the 8% provincial portion. The federal government has agreed in principle to cover the 5% federal portion, but this is subject to the passage of federal legislation.

Ontario has confirmed the provincial portion will apply regardless. Watch for updates from the Canada Revenue Agency (CRA), which administers HST and all associated rebates, as the legislation progresses.

The Bigger Picture: Why This Matters for Ontario

The Ford government estimates this one-year measure will:

• Stimulate approximately 8,000 additional housing starts in Ontario
• Support up to 21,000 jobs in the construction sector
• Boost Ontario’s GDP by an estimated $2.7 billion
• Deliver nearly $2.2 billion in combined federal and provincial HST relief

The goal is straightforward: lower the cost of new home construction, bring more supply to market, and get more Ontarians into homeownership.

What This Means for Buyers in Windsor-Essex

For buyers in Windsor, Leamington, Kingsville, and the surrounding region, this is a rare and powerful opportunity. New construction in our market is already more affordable than in the GTA, which means your savings go even further here. If you are still weighing which community is the right fit, my blog post on living in Leamington vs. Kingsville vs. Wheatley is a great place to start.

Whether you are looking at a brand-new townhome, a custom build, or a new condo, the timing on your purchase agreement is everything. You must sign between April 1, 2026 and March 31, 2027 to qualify — and that window is already open.

My advice? If you have been thinking about new construction, do not wait. This is a limited-time window and the savings are real. You can also check the latest numbers for our local market in my Leamington February 2026 Market Update and Kingsville February 2026 Market Update to see exactly where prices stand right now.

Quick Reference: Key Dates at a Glance